Brazil's data center tax regime, Redata, was first created by Provisional Measure 1.318/2025, which Congress did not vote on and which lapsed. Its content returned as bill PL 278/2026 and became Law 15.504 in September 2026. The law suspends import tax, PIS/Cofins and IPI for qualifying data centers that use renewable or low-emission energy and keep cooling water use at or below 0.05 litres per kWh. Agência Senado (Senado Federal)
Policy and incentives
Provisional Measure (Medida Provisória) No. 1.318 of 17 September 2025 amended Law 11.196/2005 (the 'Lei do Bem') to create REDATA, the Special Tax Regime for Datacenter Services. Presidência da República – Planalto (legislation portal)
Declaratory Act No. 11 of 2026, issued by the President of the National Congress on 26 February 2026, states that Provisional Measure 1.318 of 17 September 2025 (REDATA) had its period of validity end on 25 February 2026. Congresso Nacional – Ato Declaratório nº 11/2026 (Planalto portal)
Law No. 15.504 of 15 September 2026 put Redata into law. For electronic components and other ICT products that become fixed assets of an approved data center company, it suspends PIS/Pasep and Cofins (domestic and import), IPI and import tax. The suspensions become a zero rate once the company meets its commitments, and they apply only to products listed in a federal executive act. The benefits are valid for 5 years, but the PIS/Pasep, Cofins and IPI benefits apply only until 31 December 2026. Presidência da República – Planalto (Lei nº 15.504/2026)
Under Law 15.504/2026, Redata companies must offer at least 10% of their effective processing capacity to the domestic market and invest 2% of the value of the benefited products in R&D; both obligations are 20% lower in the North, Northeast and Center-West. The law also sets renewable-energy and cooling-water conditions. Presidência da República – Planalto (Lei nº 15.504/2026)
Rio de Janeiro State Law 10.431/2024, proposed by the state executive and signed by Governor Cláudio Castro, gives companies providing data processing and hosting infrastructure (data centers) a deferral of the state ICMS tax, and a full exemption for some operations. The incentive runs until 2032 and requires companies to use Rio's ports and airports, create jobs and use mainly goods and services from the state. Assembleia Legislativa do Estado do Rio de Janeiro (ALERJ)
Power and grid
According to the National Energy Balance 2026 from EPE (Empresa de Pesquisa Energética), renewables made up 86.8% of Brazil's electricity matrix in 2025, and installed wind and solar capacity reached 34,707 MW and 64,793 MW. Empresa de Pesquisa Energética (EPE) – Brazilian Energy Balance 2026 Summary Report
On 13 May 2025 the Ministry of Mines and Energy published a resolution in the Diário Oficial guaranteeing a 5 GW grid connection for the Scala AI City data center complex in Eldorado do Sul, Rio Grande do Sul. Governo do Estado do Rio Grande do Sul
In its PAR/PEL 2024 transmission plan (2025–2029 cycle), the grid operator ONS describes large loads, including green hydrogen plants and data centers, that range from hundreds of MW to several GW and plan to connect within the plan's horizon. ONS recommends reviewing the whole framework for connecting large blocks of load to the national grid (SIN). Operador Nacional do Sistema Elétrico (ONS) – PAR/PEL 2024 Executive Summary
Decree No. 12.772 of 5 December 2025 created the National Policy for Access to the Transmission System (PNAST). Users seeking transmission access register their demand in periodic 'access seasons' that ONS analyses together. Where registered demand exceeds available capacity at a connection point, a competitive process is held, and its revenues go toward lowering tariffs. Presidência da República – Planalto (Decreto nº 12.772/2025)
Law No. 15.269 of 24 November 2025, which reforms the power sector, lets consumers connected below 2.3 kV move to the free electricity market (ACL). Industrial and commercial consumers can do so within 24 months of the provision taking effect and all other consumers within 36 months, once conditions such as last-resort supply rules are in place. Presidência da República – Planalto (Lei nº 15.269/2025)
Land, zoning and sites
Brazil's National Council of Export Processing Zones (CZPE), under Resolutions 103–110, approved projects at the Pecém ZPE in Ceará for eight data center companies (ExportData Company I–IV and CDV DC I–IV). Resolution 112 approved a project by Bytedance Brasil Tecnologia Ltda. Ministério do Desenvolvimento, Indústria, Comércio e Serviços (MDIC) – ZPE criadas e projetos aprovados
According to MDIC, Brazil has 13 Export Processing Zones (ZPEs) created by presidential decree. Four of them are active, meaning their works are complete and certified: Pecém, Parnaíba, Cáceres and Uberaba. The other nine are at various stages of installation. Ministério do Desenvolvimento, Indústria, Comércio e Serviços (MDIC)
On 11 September 2024, the Rio Grande do Sul state government (Sedec) and Scala Data Centers signed a protocol of intentions for 'Scala AI City' in Eldorado do Sul, in the Porto Alegre metropolitan region. The first phase is an initial investment of about R$3 billion with 54 MW of IT capacity. Governo do Estado do Rio Grande do Sul
On 1 July 2025, the City of Rio de Janeiro signed a memorandum of understanding for the 'Rio AI City' data center hub with BNDES, the Science and Technology and Management ministries, Eletrobras and Finep. The hub will sit in the Centro Metropolitano, a planned neighbourhood in Barra da Tijuca. The city states a goal of 3 GW of capacity by 2032. Prefeitura da Cidade do Rio de Janeiro
Demand and connectivity
Anatel's competition monitoring report for Q2 2026, published 15 July 2026, recorded 55.4 million fixed broadband accesses in Brazil. Fibre made up more than 80% of the base, or 44.7 million accesses. Agência Nacional de Telecomunicações (Anatel)
The EllaLink submarine cable linking Fortaleza to Sines, Portugal (about 6,000 km) entered service on 1 June 2021. With it, Fortaleza hosted 16 submarine cables, according to Ceará's Secretariat of Science, Technology and Higher Education. Secretaria da Ciência, Tecnologia e Educação Superior do Ceará
The Brazilian Artificial Intelligence Plan (PBIA) was presented on 30 July 2024 with planned investments of R$23.03 billion through 2028. It includes about R$1.8 billion to upgrade the Santos Dumont supercomputer at LNCC in Petrópolis (RJ).
Sustainability, water and climate
Law 15.504 of 15 September 2026 (Redata) requires participating data centers to meet all of their electricity demand through supply contracts or self-production from renewable or low-emission sources. Presidência da República – Lei nº 15.504/2026
Law 15.504 of 15 September 2026 (Redata) requires participating data centers to have a water use efficiency for cooling of 0.05 litres per kWh or less, measured annually and publicly reported. Presidência da República – Lei nº 15.504/2026
Brazil's second Nationally Determined Contribution (NDC) under the UNFCCC sets a target to cut net greenhouse gas emissions by 59% to 67% below 2005 levels by 2035. That corresponds to 1.05–0.85 GtCO2e (GWP AR5). Government of Brazil – Second NDC (UNFCCC registry)